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Scalping with Moving Averages Convergence/Divergence Indicator (MACD) Indicator
![Patti Patti](https://c.mql5.com/avatar/2014/7/53B6AB8D-A88F.gif)
- What’s moving the market this morning?
- Which markets are most active?
- What drivers (or news) might come out to push the market further?
The Setup
Before a scalper ever triggers a position they need to first find the appropriate market environment. Multiple Time Frame Analysis can be
helpful but more important is the fact
that that outlook or opinion should mesh with the ‘bigger picture’ view
of what’s going on at the moment.
For scalpers, the hourly and 4-hour charts carry special importance, as
those are the ideal timeframes for seeing the bigger picture. After that, traders should look to diagnose the trend.
A great indicator for investigating trend strength is the Average
Directional Index (ADX). Also popular for investigating trends is the
Moving Average Indicator.
The Entry
After the day-trader has found a promising setup, they then need to
decide how to trigger into positions, and MACD can be a very relevant
option for such situations - they merely need to wait for a corresponding signal via MACD to initiate
the position.
When MACD crosses up and over the signal line, the trader can look to go long.
After a long position is triggered, the trader can look to close the
position when MACD moves down and under the signal line (which is
usually looked at as a sell signal, but because you did the ‘bigger
picture analysis’ with the longer-term chart, this is merely a ‘close
the long signal.’)
Scalpers can trigger positions when MACD Signal takes place in correct direction:
If the trader had determined the
trend to be down on the longer-term chart or if their fundamental bias
is pointing lower, they can look for MACD to cross down and under the
signal line to trigger their short position. Once MACD crosses up and over the signal line, the trader can look for short position.
Scalpers can close positions when opposing MACD Signal takes place:
Free to Downloads
EAs for Metatrader 5
Indicators for Metatrader 5
- Ergodic MACD Oscillator Blau_Ergodic_MACD - indicator for MetaTrader 5
- MACD - indicator for MetaTrader 5
- Moving Averages Convergence/Divergence Indicator Blau_MACD - indicator for MetaTrader 5
- ZeroLag MACD - indicator for MetaTrader 5
- MACD Histogram, multi-color [v04] - indicator for MetaTrader 5
- MACD Histogram, multi-timeframe, multi-color [v03] - indicator for MetaTrader 5
- The MACD with the definition of price extremums - indicator for MetaTrader 5
- MACD-2 - indicator for MetaTrader 5
Indicators for Metatrader 4
- MACD MA Price - indicator for MetaTrader 4
- Moving Average Convergence/Divergence, MACD - indicator for MetaTrader 4
- MACD Momentum - indicator for MetaTrader 4
- MTF MACD - indicator for MetaTrader 4
- ZeroLag MACD - indicator for MetaTrader 4
- MTF MACD scalper - indicator for MetaTrader 4
- MACD Ichimoku - indicator for MetaTrader 4